I've (unfortunately) never played an Infinity Engine game before. Still, I'm about 10 hours in on the standard difficulty, and while the game is very challenging, I fortunately haven't faced anything that I couldn't beat after 2 or 3 tries.
Here's what seems to work for me:
- Finish as many available quests along the way as you can/want, which racks up experience and some loot (in the buried temple of the first town, for instance).
- My party has two defensive-focused fighters that hold the front line (esp. with a defensive stance ability that engages up to 6 enemies). It keeps them away from my other party members.
- I have my ranged characters in the back
- Use the battlefield to your advantage. Funnel enemies through doorways, and in the case of those nasty enemies that can transport behind your front line, position your squishy members between a wall or object and your front line, protecting them all around.
- Take advantage of the bestiary to know your enemy's weaknesses
Sorry if my comment is obvious to people in this forum or turns out to be wrong; I'm learning all of this as I go and this is just what works for me. But the most common problem I read about is the absence of that solid front line.